Suppose the consumer's income elasticity for good $x$ is -0.10 when monthly income is $1,000, and the consumer's income elasticity for good $x$ is 0.10 when monthly income is $2,000. From this information we can infer that good $x$ is a normal good for low levels of income and an inferior good for high levels of income.

Question

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The sign of the income elasticity of demand indicates whether a good is a normal good (positive income elasticity) or an inferior good (negative income elasticity). Since the income elasticity changes from negative (-0.10) at a lower income level to positive (0.10) at a higher income level, it suggests that good $x$ is an inferior good at lower income levels and becomes a normal good as income increases.

Suppose the Consumer's Income Elasticity for Good xxx Is -010 When Monthly Income Is $1,000, and the Consumer's Income

Suppose the Consumer's Income Elasticity for Good $x$ Is -010 When Monthly Income Is $1,000, and the Consumer's Income